Net stocks shiver on Amazon outlook

The Internet sector helped pull the technology-laden Nasdaq index lower. Amazon.com led the downtrend, falling 9, or 21 per cent, to 33. Trade was heavy, and the stock was the most active issue on the Nasdaq market. Amazon.com has fallen 69 per cent since December and is at its lowest level in 18 months.

Seattle-based Amazon.com has not turned a profit even as it has expanded from its bookselling core into such areas as groceries and cookware. As is common for shares in many fast-growing Internet companies, analysts such as Meeker have focused on revenues, not profits. Internet shares also have been buffeted in recent weeks by concerns about funding amid higher interest rates.

Amazon.com’s fellow Internet commerce stocks were hard hit. Among them, auctioneer eBay Inc was off 7 at 51-3/16, and Priceline.com Inc slipped 3-15/16 to 41-3/8.

WebMethods Inc, a maker of electronic commerce software, was off 7-19/64 at 144-7/8. Internet media company Yahoo! Inc slipped 6-3/16 to 125-1/2. CNET Networks Inc, which offers an online technology marketplace, was off 1-1/4 at 26-13/16. America Online Inc, the No 1 Web service provider, was down 2-1/16 at 54-7/16. AOL shareholders approved a $123-billion merger with media giant Time Warner Inc.